PayPal offers $50,000 Reg E insurance for consumer encrypted payments

2023-05-02 19:20:30

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ChainCatcher news, PayPal's Senior Vice President Jose Fernandez da Ponte stated in an interview at the Consensus conference that PayPal will provide voluntary Reg E insurance for cryptocurrency transactions conducted by consumers, up to $50,000.

Reg E refers to the Electronic Fund Transfer Act, a federal regulation in the United States that outlines consumer protection measures related to electronic funds transfers (EFT). Enforcing Reg E for crypto payments has been the most natural way for the CFPB to begin regulating the crypto market, but it is worth noting that the Consumer Financial Protection Bureau (CFPB) has not yet enforced Reg E for crypto payments. PayPal is voluntarily implementing this rule.

PayPal's voluntary semi-compliance is an important development in the regulatory status of crypto consumer payments. It is also the first company to commit to compensating users for any losses incurred due to unauthorized cryptocurrency transfers. At the end of last month, PayPal announced that it would offer cryptocurrency transfer services to Venmo customers. (source link)

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PayPal Jose Fernandez da Ponte Reg E

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